Learn the trade here. Make it on tradeMONSTER

Options Trading News

November 20, 2012  Tue 3:16 AM CT

USB: SEE CHART GET CHAIN FIND STRATEGIES
As shares of U.S. Bancorp continued to bounce yesterday, one long-term trade was betting on a floor beneath the stock.

A trader sold 5,000 January 2014 25 puts for the bid price of $1.33, according to optionMONSTER's systems. The volume was twice the open interest in the strike at the start of the day, so it was a new position.

USB rose 1.7 percent to $32.08, building on Friday's gains and erasing its losses of last week. The financial stock was at a four-year high just above $35 in early October, but Thursday's low of $30.96 was its lowest price since June.

The put selling is a bet that USB will hold above $25 through mid-January 2014. The trader faces the obligation to buy shares on a pullback, but at an effective price of $23.67. (See our Education section)
Share this article with your friends


Premium Services

Education & Strategy

When cash is king (of hedging)

Whether your trades are winning or losing, it can be tempting to add to your positions. But in either case,...

View more education articles »
optionMONSTER stockMONSTER tradeMONSTER